Edelman Trust Barometer 2008

About the Annual Edelman Trust Barometer
The 2008 Edelman Trust Barometer is the company’s ninth survey on trust and credibility.
With this year’s survey, we include – for the first time – the opinions of 25-to-34-year-olds
in 12 countries. This younger cohort was sampled concurrently with the 35-to-64-year-old
group in 18 countries.

The people interviewed in the 2008 survey:
• are college-educated
• report a household income in the top quartile of their country
• report a significant interest in and engagement with the media, business news, and
policy affairs.
The 35-to-64-year-olds were surveyed as follows: 400 in the United States; 300 in China;
150 each in the United Kingdom, Germany, France, Italy, Spain, the Netherlands, Sweden,
Poland, Russia, Ireland, Mexico, Brazil, Canada, Japan, South Korea and India. The 30-minute
interviews were conducted in October-November 2007.
The 25-to-34-year-olds were surveyed as follows: 100 in the United States; 75 in China; 50
each in the United Kingdom, Germany, France, Russia, Mexico, Brazil, Japan, South Korea,
Canada and India. The 30-minute interviews were conducted in October-November 2007.

Margin of Error
For the 35-64 age group, margin of error is ± 1.7% globally; ± 5.0% for the U.S. sample;
±5.7% for the China sample; and ± 8.1% for other countries in the study.
For the 25-34 age group, margin of error is ± 3.8% globally; ± 10.0% for the U.S. sample;
±11.5% for the China sample; and ± 14.1% for other countries in the study.

Disclosure
At the time the 2008 Trust Barometer was compiled, Edelman had a client relationship with
the following companies or brands mentioned in this brochure: the Consumer Healthcare
Products Association (CHPA), Dove, Scotts Miracle-Gro, and Starbucks.

2008 Edelman Trust Barometer research was conducted by

On the cover, from left: Line of customers waiting to withdraw money from embattled British
bank Northern Rock, September 2007; former Citigroup Chairman and CEO Charles Prince,
who resigned in November 2007; Dora the Explorer, one of millions of Chinese-made toys
recalled by Mattel in August 2007; Floyd Landis, 2006 Tour de France winner, forced to give
up his title after losing a doping appeal in September 2007; Shinzo Abe, former prime minister
of Japan, who stepped down in September 2007 after just one year in power.

The Trust Government needs to join business and NGOs in helping page 2
Dilemma solve major societal problems.

Meet the Twenty-five to 34-year-old opinion elites are more trusting page 4
Info-entials of business, less xenophobic, and open to more voices
than older elites.

Spokespeople: Across the globe, all age groups rely on a mix of specialized page 6
Trust Is in the Mix experts and peers for information they trust.

Media: Change at Social media is growing but mainstream media is still page 8
a Measured Pace most widely used and believed for information about
companies.

Reputation: From The new reputation makers can be either advocates for page 10
Management to companies they trust or naysayers against those they
Leadership distrust.

United States: The gap between trust in U.S. business and government is page 14
Business on Top at its widest in Trust Barometer history.

Europe: A Region NGOs have a trust advantage in most European countries, page 16
of Countries with differences seen in Eastern Europe.

Asian Markets: China’s economic influence on the world and the region page 18
The China is enormous, but trust in Chinese companies is at an all-
Syndrome time low.

Canada: Trusted These two regions’ levels of trust in business are among page 20
Latin America: the highest in the world.
Trusting

The Trust Dilemma

This year’s Edelman Trust Barometer points ever more block: businesses don’t take the same position on is-
sharply to a central public policy dilemma: In most coun- sues like trade. Nor do NGOs, where in any given field
tries surveyed around the world, influentials trust business you have groups favoring and opposing virtually every
and non-governmental organizations (NGOs) more than single issue. Private organizations don’t pull in the same
governments, while the fact remains that government is direction; they take widely conflicting paths, much as
the only place with sufficient power and authority to solve politicians do.
or manage the major problems facing societies.
What the Edelman Trust Barometer reveals, then, is
The trust trend away from governments and toward much more the justifiable frustration of the elites around
business and NGOs has been a key finding of the Edel- the world in the shortcomings and failures of their political
man study for several years. It’s now the case in 13 of the classes than considered views on how to solve major
18 nations polled. Strikingly, in the United States at least, problems.
the only age cohort going in the opposite direction is the It’s interesting to see, however, that the elites taking
youngest, ages 25 to 34, whom Edelman surveyed for part in the Edelman survey watch events carefully, make
the first time. Fifty-three percent of these young elites, important distinctions, and adapt their views shrewdly.
compared to 39% of the baby boomers (35-64), placed The countries where governments were given good trust
good trust in government. marks included the Netherlands, China, and Sweden, all
It can’t be that baby boomers around the world fail countries where governmental performance has been
to recognize that business and NGOs do not have the reasonably good in promoting internal economic growth,
political reach, legal vehicles, and the money to solve notably China. Respondents in Germany, France, and
the problems the boomers want solved – global warm- Britain show increased trust in their governments, from
ing, poverty, energy dependence on the Middle East, 22% to 32%, following arguably more effective political
health care, and human rights. At this point, however, leadership in “old Europe” this last year.
the older age groups have experienced decades of Trust is the key ingredient in politics, and the Trust
poor performance from their political leaders. It is no Barometer has been quite reliable in telling us which way
wonder that deep cynicism has crept into their views the wind is blowing. The message to political leaders is
about government and that they have started looking at to start solving problems.
alternatives.
But while businesses and NGOs can certainly help
deal with the major issues by taking action on their own
(being more fuel efficient or pressuring their governments,
for example) that’s not nearly enough to get the job done.
No information server such as Yahoo can or will fight
Beijing’s requests for data on individual subscribers;
only foreign governments might have a chance to budge Leslie H. Gelb
Chinese leaders on this. is president emeritus
of the Council on Foreign
Those advocating salvation through business and Relations and a former
NGOs also should remember one killer operational road New York Times columnist.

2

2008 Trust Barometer

Global Trust in Institutions:
NGOs and Business Tied as Trust Leaders;
Business Holds Same Trust Levels as 2007
How much do you trust each institution to do what is right?

100%
2007
90%
2008
80%

70%

60%

50%
53
52

52

51

48*
44
40%

43*
40
30%

20%

10%

0%
NGOs Business Media Government

Opinion elites ages 35-64 in 18 countries; global total
Responses 6-9 only on 1-9 scale; 9 = highest
* Statistically higher than comparable age group at the 95% confidence level

Government Trails Business in Most Areas

100%
Business
90%
Government
80%

70%
68

60%
58
57

57

50%

40%
43
39

37

36

30%

20%

10%

0%
North America EU Asia Latin America

Opinion elites ages 35-64 in 18 countries

3

Meet the Info-entials
For years, the younger generation has set the tone in The political relationship between the country in which a
major segments of the consumer market—athletic shoes, company is headquartered and the respondent’s own,
clothing, and music, to name a few. Now Edelman’s 2008 is much less important to the younger set in the United
Trust Barometer, which studied young opinion elites (ages States and the three major European economies.
25-34) for the first time, reveals that many younger people, We also see a more positive feeling toward all industries
historically cynical about business, tend to trust it more surveyed among the young opinion elites—either signifi-
than their older counterparts in many regions of the globe. cant (biotech, pharmaceutical, entertainment, and media)
This constitutes a tremendous opportunity for business or directional (technology, automotive, health care, energy,
to tell its story. consumer packaged goods, and insurance).
For these new “info-entials,” sharing information is an ev-
When asked what makes them trust a company, young-
eryday activity. They use and trust more information sources
er opinion elites give top spots to factors that define brands
than their older peers. They are more likely to spread their
(quality of products/services, customer service, value) and
opinions about and experiences with companies—good
to corporate reputation. They place more importance on
and bad—on the Web. They respond to a company’s
a company’s social and environmental track record than
actions in an entirely new way: with information.
on its financial performance, and say it’s much more im-
“Info-entials” gather information in a profoundly differ- portant for a company seeking to build local reputations
ent manner than their older peers. As a bee pausing in their area to practice sound environmental policies than
to gather pollen at several flowers, “info-entials” rely on it is to simply make charitable contributions.
multiple sources of information, not a single one. They
Here are some recommendations for how companies
assimilate news throughout the day by engaging on
can reach, engage and convince young opinion elites,
message boards or forums, blogs, Wikipedia, and social
based on our 2008 findings and my observations over
networks, as well as by checking more traditional forms
the past year:
of media, including newspapers (mostly consumed on-
line), television, and business magazines. Their views 1. Inform the spontaneous discussion that is
are shaped by continuous participation, reflection, and always under way on the peer-to-peer (horizontal)
sharing. In fact, in the United States, a free-content axis of communication.
encyclopedia (such as Wikipedia) is the second-most
credible source of information about a company after
business magazines. Younger Elites Show
The “info-ential” generation appears more globally open,
showing more trust in companies from the BRIC (Brazil,
Higher Trust in Business
Russia, India, China) nations as well as South Korea and in Nine of 12 Countries Surveyed
Mexico, and to brands such as Gazprom, Lenovo, and How much do you trust business to do what is right?
Tata. In the United States, a company headquartered
in China is trusted by 38% of the 25-to-34-year-olds 25-34 Opinion Elites 35-64 Opinion Elites
surveyed, compared to 15% of the 35-to-64-year-olds. Mexico 75 84

India 74 76
Younger Opinion Elites Japan 61 62
More Likely to Talk Online About US 58 60
Trusted and Distrusted Companies 54 59
China
Than Older Elites
UK 45 56
How likely are you to share your opinion and experiences on the
Web about companies you trust/distrust? * France 30 52

25-34 Opinion Elites 35-64 Opinion Elites South Korea 43 52

Russia 42 50
Trusted 56 63*
Brazil 56 61

Canada 44 49

Distrusted 54 61* Germany 32 35
0% 20% 40% 60% 80% 100%
0% 10% 20% 30% 40% 50% 60% 70% 80%
* Statistically higher than comparable age group at the 95% con- * Statistically higher than comparable age group at the 95% con-
fidence level fidence level

4


Share your content with your employees, passionate con- words, specialized experts with professional credentials.
sumers, and bloggers, allowing them to co-create, repurpose, In France, younger opinion elites are nearly twice as likely
and improve their knowledge through dialogue. Change your to consider a regular employee credible (56%) as they
tone from one that pronounces to one that invites participa- are a CEO (30%) or government official (32%). But they
tion, ceding some control in return for credibility. don’t jettison top-down information either: They are more
inclined to believe what companies say about themselves
Because this generation seeks its own information, it
in press releases, annual reports, newsletters, and on
prefers first-person testimonials to statements by tradi-
their Web sites.
tional business or government authority figures. Young
opinion elites tend to trust people like themselves as well In many nations, they share their high regard for busi-
as academics, doctors, and financial analysts—in other ness with one other institution, most often NGOs, implying
that trust is highest when author-
ity is dispersed and checked by
Younger Opinion Elites More Trusting a countervailing force. So relying
on top-down messages from the
of Nearly Every Source of Information CEO is, at best, insufficient and
About Companies Than Older Elites probably ineffective.
How credible do you feel each of the following sources is for information about a company? 2. Take on broader soci-
etal challenges as part of the
* Articles in corporate remit, acknowledg-
business 55 62
magazines ing these not only as profit-
making opportunities but also
Stock or as opportunities to engage
industry analyst 55 57
reports with stakeholders in differ-
ent ways.
Television 49 53
news coverage Brand and corporate reputation
are increasingly indistinguishable;
* Articles in 46 52 every action is visible and every
newspapers company accountable. Great
Conversations companies recognize the poten-
with your friends 48 51 tial for programs with a purpose,
and peers whether the environment, human
News rights, or female self-image (the
coverage1 46 47 Dove Campaign for Real Beauty).
on the radio These efforts have a positive influ-
* Free content ence on all stakeholders, including
encyclopedia, 39 44 younger opinion elites who expect
such as Wikipedia
companies to take a positive so-
* Communications
issued by 37 42 cial role.
companies 3. Recognize the Info-ential
* A company’s Generation as a distinct inter-
31 40 est group, positively inclined
own Web site
but constantly reviewing the
* Online message
boards, forums 30 35 scene, demanding immediacy
or newsgroups and transparency.

* Television As the most connected genera-
27 31 tion, it follows that the 25-to-34-
talk shows
year-olds are more likely to share
* Corporate
or product 23 28 their opinions and experiences on
advertising the Web to support a company
they trust. If a company violates
* Blogs 19 26 trust, this group is more likely to
react by spreading the bad news
* Social networking on the Web while their older peers
sites (such as 20 25 are more likely to support legisla-
MySpace or Facebook) 25-34 Opinion Elites tion against them or refuse to buy
* Web-based shares in the offending company.
video sharing sites 19 25 35-64 Opinion Elites
(such as YouTube)
0% 10% 20% 30% 40% 50% 60% 70%
Richard Edelman
Opinion elites ages 25-64 in 12 countries is president and
* Statistically higher than comparable age group at the 95% confidence level chief executive
officer of Edelman.

5

All Ages Trust Word of Mouth
You are much more likely to believe what you see, read, or hear

Spokespeople: about a company if someone you know has already mentioned
it to you. Do you agree or disagree?

Trust Is in the Mix 25-34 Opinion Elites* 35-64 Opinion Elites

% of
respondents 83
who
somewhat /
strongly
agree 78
Across countries and age groups, opinion elites are
continuing to rely on their peers as well as on experts like
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
academics, industry analysts, and doctors for credible
information about companies.
* Statistically higher than comparable age group at the 95% con-
fidence level
As a result, companies need to be sure they’re engag-
ing audiences in both directions – horizontally, along what
we refer to as the peer-to-peer axis of communications,

Whom do you trust?
and up and down on the vertical axis to capture the sup-
port of the specialists who hold sway in their area of busi-
ness. That could be, as the graph on page 5 shows, an „ In Brazil, Canada, Germany, the Netherlands, Spain,
industry analyst, an academic, a doctor, or another figure Sweden, and the United States, “a person like
with the right credentials.
me” is considered the most credible source of
To underscore the power of peer-to-peer, we’re seeing information about a company.
high numbers for the credibility of word of mouth, not just „ In France, India, Ireland, Mexico, Poland, South Korea,
as a means to convey information, but a potent way to and the United Kingdom, a financial or industry expert
share perceptions and emotions about that information: comes in first on the list of credible spokespeople.
the facts plus the enthusiasm – or skepticism. It’s the bias
that primes people to believe, or not believe, what they
„ In Italy, Japan, Russia, and Spain, academics are
hear or read elsewhere later on. Word of mouth is not just ranked most credible.
a different kind of messenger; it’s a fundamental change „ Doctors or health care specialists are either the
in the traditional value system of information. second- or third-most credible source of informa-
tion about a company according to opinion elites
Consider the five moms who got together to stem the
abuse of cough medicine among teens for client CHPA
in Brazil, Canada, France, Germany, Ireland, Italy,
(the Consumer Healthcare Products Association), and in Japan, Mexico, the Netherlands, Russia, South
just three months through Tell-a-Friend e-mails, reached Korea, and the United Kingdom.
100,000 other mothers. Each of the five moms was „ Non-profit or NGO representatives take second
passionate about spreading the word among schools, or third place in the credible spokesperson rank-
churches, governments, and friends and family. Their ing in France, Italy, the Netherlands, Ireland, and
messages were strengthened by the participation of na- South Korea.
tional organizations like the Community Anti-Drug Co-
alitions of America, D.A.R.E America, and the national
Parent-Teachers Association.
With whom do you talk?
„ In North America, 82% of opinion elites frequently
Geography is fading in importance when it comes to share information about companies with family,
defining “a person like me.” While local factors play a role and 79% share it with friends. At 57% each, peo-
in other parts of our survey (trust in a company goes up
if a company creates jobs in the community), being from
ple in their professional network, and co-workers
the same place doesn’t matter so much when it comes are next on the list.
to describing a person like you. Sharing interests and „ In Latin America, the top three spots are more even-
political beliefs does. ly distributed, with 77% saying they share opinions
about companies with people in their professional
network, 72% with family, and 71% with friends.
„ In the European Union, the top three audiences receiv-
ing opinion elites’ thoughts about companies are their
friends (75%), family (68%), and co-workers (63%).
Pam Talbot
is president and
„ In Asia, friends come in first (73%), followed by
chief executive officer co-workers (69%), and members of a person’s
of Edelman in the professional network (66%).
United States.

6


Communications Today Requires
Top‑Down and Peer‑to‑Peer Spokespeople
If you heard information about a company from each of these sources, how credible would it be?

100% (Most trusted)
T
O
P
D
O Financial or industry
W analyst (57%)
N

Academic
(56%)

Doctor or healthcare
specialist (55%)
PEER-TO-PEER (Most trusted) 100%
50%
0% (Least trusted) CEO of a
company (36%)

Government ofﬁcial
or regulator (32%)

Blogger Regular employee A person like
(14%) of a company (39%) me (58%)
Entertainer / Non-proﬁt / NGO
Athlete (15%) representative (49%)

0% (Least trusted)


Who is a person like me?
„ “Shares my interests” and “holds similar political beliefs” continue to be the top two defining factors of “a
person like me” in most countries, with a slight drop in the U.K., France, and Germany for “shares my interests”
(67% to 61%).
„ In China, the importance of sharing interests went up to 65% from 53%, but in Brazil it dropped to 65% from
a survey-high of 79%.
„ Being from the same local community dropped in importance over the past year, in some countries quite
significantly: Ireland to 29% from 51%; Russia to 28% from 47%; Sweden to 9% from 27%; the U.K. to 18%
from 44%; and the United States to 24% from 44%.
„ Since last year’s survey, being in the same profession dropped in importance: China to 36% from 46%; India
to 36% from 63%; Japan to 32% from 46%; Russia to 31% from 51%; South Korea to 27% from 46%; the
U.K. to 31% from 46%; and the United States to 23% from 35%.

7

Media:
Change at a Measured Pace

Business Magazines
Trust in media as an institution is at a high point in
No. 1 Most Credible Source
many countries, making marked increases over past
year standings in all regions of the world. This could be
in 10 of 18 Countries
due to the broader spectrum of ways media brands are How credible are articles in business magazines for information
covering their stories and making their content available, about a company?
including investigative and scandal-related pieces. Spain . . . . . . . . . . . . . . . . . . . . . . . 77%
The media world may well be undergoing a dramatic Brazil . . . . . . . . . . . . . . . . . . . . . . . 71%
transition, but among elites surveyed, change is occur-
India . . . . . . . . . . . . . . . . . . . . . . . . 69%**
ring at a measured pace. Mainstream media – newspa-
pers, television news, and business magazines – are the Ireland . . . . . . . . . . . . . . . . . . . . . . 67%
most widely used sources of information about compa- Russia . . . . . . . . . . . . . . . . . . . . . . 65%
nies. Business magazines are the most trusted with 10
of 18 countries saying they’re the most credible, and South Korea . . . . . . . . . . . . . . . . . 64%
on a global basis, they are in the top spot for credibility. Italy . . . . . . . . . . . . . . . . . . . . . . . . . 63%
But as the Trust Barometer bears out, social media is
gaining ground. Germany . . . . . . . . . . . . . . . . . . . . 63%
United States . . . . . . . . . . . . . . . . . 60%
People depend on reliable brands regardless of the
delivery system, mainstream media believe. In the Trust Canada . . . . . . . . . . . . . . . . . . . . . . 49%**
Barometer, CNN, BBC, and Google are cited in the Opinion elites ages 35-64 in 18 countries
majority of countries surveyed as information sources “Very / extremely credible” responses only
people rely on for information about companies. Usage ** Tied for first with stock or industry analyst reports
and belief patterns among informed, news-seeking audi-
ences suggest that professionally generated content will
continue to edge out user-generated online content.
We should keep an eye on the social media informa- Getting and
tion sources and content generators in the chart on the
facing page to see how much they grow from the lower Trusting the News
left quadrant to higher usage and credibility levels. How
much further will Wikipedia, in existence since 2001, en- „ Globally, CNN, BBC, and Google are the most
croach on the professionally generated content of the En- relied-on news sources for information about a
cyclopedia Britannica? There will always be a solid market company (25%, 17%, and 9%, respectively).
for quality information content delivered by professionals
and trusted brands. Wikipedia is growing in popularity. „ Thirty-five-to-64-year-olds are more likely to read
The Encyclopædia Britannica is still in business. a newspaper in print format (44%) than in elec-
tronic format (21%), while their younger coun-
terparts are shifting more toward online news
consumption (35% print vs. 30% electronic).
Garrick Utley
„ Use of social media for company information is
is president of the Levin Graduate
Institute of International Relations and generally highest in BRIC countries (Brazil, Russia,
Commerce of The State University of New York India, China) and among younger opinion elites.
and a former broadcast journalist for
NBC News, ABC News, and CNN. „ Reading news tops the activities people do online
(86%), followed by shopping (72%) and conduct-
ing research (70%).

8


Most Used Sources Are Generally the Most Credible
From which of the following sources do you regularly get information about companies? How credible do you feel each is?

Articles in
newspapers Television
news coverage
Usage

Articles in
business
magazines
Conversations with
A company’s your friends and peers News coverage
own Web site on the radio
Corporate or Communications
product issued by companies Stock or industry
advertising such as press releases, analyst reports
annual reports, and newsletters

Television talk shows
Online message boards,
forums or newsgroups Free content encyclopedia such as Wikipedia

Web-based video sharing sites such as YouTube
Credibility
Blogs Social networking sites such as MySpace or Facebook

Traditional Corporate Social


Trust in Media at Survey High in Many Countries
How much do you trust media to do what is right?

80%
2006 2007 2008
70%
65
64

60%
62
60

55

50%
53

53
49
48
45

45

44

40%
43

43

41
41
38

38

34

30%
33

33
31

30
29

20%
22
19

10%

0%
UK Germany Italy US Canada Japan South Korea Brazil India*

* Tracking data available for 2007 only

9

Reputation:
From Management to Leadership
A Company’s Actions Speak Loudest
A January 2008 Wall Street Journal headline warned: formed negative perceptions, companies should work to
“As Economy Slows, Reputation Takes On Added Mean- put trust in the bank to spend when difficult situations arise,
ing.” This year’s Edelman Trust Barometer confirms that like a financial challenge or a product safety crisis. The
stakeholder trust, the underpinning of reputation, is af- trust stakeholders have in a company determines whether
fected by everything a company does. Trust is created – or they will pay or refuse to pay a premium for products
eroded – every day a company is open for business. or services; will or won’t speak or write in support of a
Our study shows that the most powerful drivers of trust company’s actions; will or won’t block its plans to open
are quality of products or services, customer service, and a factory in a community.
a company’s overall reputation. In the global marketplace, Companies would be wise to pay more attention to
product quality and company trust and identity are increas- fostering trust in advance and gaining an understanding
ingly inseparable—Starbucks and Mattel are positive and of its depth among its audiences. Both will provide some
negative examples of this trend. After direct experience with security during a time of uncertainty and change—espe-
a company’s product, the most important trust issues for cially when the economy takes a downturn. By protecting
stakeholders are its overall reputation, its social and envi- a company’s license to operate, trust can serve as a
ronmental track record, and how it treats its employees. catalyst for a company’s growth. Without it, a company
To witness these drivers in action, we can turn to the loses that license.
technology sector, which earns the highest levels of trust
around the world. Tech companies turn out high-quality
products that make life easier and speed information
reliably. Tech is also at the forefront of finding solutions
that advance environmental sustainability. Taken together,
these factors boost the industry’s reputation.
Neal Flieger
Trust is built or spent situation by situation. As it can be is general manager of Edelman
very difficult to earn stakeholders’ trust once they have in Washington D.C.

Drivers of Trust in Business
How important are each of the following factors to building your trust in a company?
Quality of products
and services 94
Customers

Customer service 92
Value for money of
products and services 87
Company’s
overall reputation 90
Reputation

Social and environmental
track record 83

Reputation as
a place to work 81

Financial performance 76
Leadership

Respected
CEO or leader 71

Industry sector 67
The company’s
presence in your area 63
Familiarity

Someone you trust
Local

works for the company 59

Headquarters nationality 58

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Responses 6-9 only on 1-9 scale; 9 highest

10


Opinion Elites Act Positively and Negatively Toward Companies
How likely are you to take each of the following actions?
Companies That I Trust Companies That I Distrust

Choose to buy Refuse to buy
their products 88 their products
or services
85
or services

Refuse to
Recommend them
to people I know 84 invest in them 83

Support plans Share a negative
for them to
locate in your 64 company opinion
with others
78
local community

Support legislation
controlling or
Choose to
invest in them 61 limiting their 65
activities

Oppose plans
Pay a premium for them to
for their products
or services
52 locate in my 56
community

Write a letter or Write a letter or
e-mail of support e-mail complaining
to the media,
a politician or an
37 to the media, 44
a politician or an
ofﬁcial third-party ofﬁcial third-party
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

“Somewhat/very likely to take action” responses only

Most and Least Trusted Industry Sectors
How much do you trust businesses in each of the following industries to do what is right?

North America Latin America EU Asia Global Total
Most Trusted Industry Sectors
Technology Technology Technology Technology Technology
(79%) (89%) (73%) (80%) (77%)
Biotech / life sciences Automotive Biotech / life sciences Automotive Biotech / life sciences
(71%) (84%) (62%) (73%) (65%)
Consumer packaged
Banks Health care industry Banks Automotive
goods manufacturers
(67%) (62%) (71%) (62%)
(77%)
Least Trusted Industry Sectors
Insurance Insurance Media companies Entertainment Media companies
(48%) (61%) (40%) (55%) (46%)
Media companies Banks Insurance Media companies Insurance
(44%) (57%) (35%) (53%) (45%)


11

Authenticity Builds Trust Credibility of a CEO in 6 Markets
If you received information from a CEO about a company, how
credible would it be?

The findings of this year’s Edelman Trust Barometer tell 80%
us that stakeholders can either be advocates for compa- US UK/France/Germany China
nies they trust or naysayers against those they distrust. 70%
Brazil Canada Japan
That means companies must evolve “reputation manage-
ment” into “reputation leadership,” working proactively to 60%
build stakeholder trust – in other words, playing offense
instead of defense.
50%
Actively shaping reputation requires a two-part strategy:
a focus on the top drivers of trust in a company – deliver- 40%
ing the best products and services – as well as authentic
engagement in social issues that matter to stakeholders. 30%

Meaningful social leadership is now expected by em-
20%
ployees and understood by investors, especially on is-
sues that are directly tied to a company’s business. For
10%
example, Scotts Miracle-Gro, the lawn care company (and
an Edelman client), has made a healthy environment the
focus of its social responsibility. Our study also shows 0%
2003 2004 2005 2006 2007 2008
that at the local level, sound environmental practices are
second only to job creation as the most important factors Opinion elites ages 35-64 in 18 countries
in building reputation. “Extremely credible” and “very credible” responses only

The CEO has a crucial role to play. The general down-
turn in trust of a CEO as credible company spokesperson,
as indicated over the last several years by the Barometer,
was a response to the fall of the “rock star” CEO of the
Building Local Reputation:
Enron era. CEOs then went “underground,” believing they Creating Jobs and Environmental
needed to speak only to Wall Street. But the CEO still
figures greatly in how a company is perceived. As we saw
Responsibility Trump Giving Money
last year with the sudden departures of Stan O’Neal at Which of the following actions are most important for a global
Merrill Lynch and Charles Prince at Citigroup, boards now company seeking to build its local reputation in your area?
recognize that taking swift action to change leadership
communicates the company’s commitment to account- Creates jobs
in your area 71
ability and the preservation of trust with its stakeholders.
Practices sound
environmental policies 57
Social leadership presents CEOs with the opportunity
to partner with NGOs and other third parties, to welcome Respects local
customs 49
other voices to the conversation, and to personally par- and traditions
ticipate in a company’s cause. By serving as booster, Doesn’t push out
the local 32
networker, and role model – in short, by engaging authen- competition
Takes a
tically – a CEO can once again be a powerful ambassador leadership role 25
for trust in a company. in issues relevant
to your community
Markets
its products 24
in your area
Makes charitable
contributions 24
in your community
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Matthew Harrington
is president of Edelman’s Opinion elites ages 35-64 in 18 countries
U.S. Eastern region and Top three responses
chair of the firm’s corporate practice.

12


Trust Is in the Eye of the Beholder

Not all opinion elites or consumers care about com- • Social Activists are self-appointed citizen broad-
pany reputation. But we have identified distinct audiences, casters who frequently speak out in person, sharing
called TrustHolders™, who act (or influence others to act) their opinions on business and taking public action
based on their trust in a company and its behaviors. These if needed to support or oppose companies and
new reputation mavens require companies to change their products. They are also active online, sharing
their thinking about corporate reputation as something their experiences through e-mails to media or official
they possess to a license granted them by their most third parties, and by opining in forums and on social
important audiences. networking sites. Social Activists are watching your
actions on labor, community relations, and the envi-
Companies need to recognize the value of direct con- ronment. A company that wants to rebuild its “green”
versations with Social Networkers and Social Activists, image after an environmental accident or is opening
the two most influential, activated TrustHolder audiences, a new factory or store in a community would work to
encompassing two-thirds of global opinion elites. engage Social Activists.
How do you reach and engage your relevant TrustHold-
• Social Networkers are informed conversationalists
ers? First, take a look at your pressing issues and pub-
who are the most likely of all segments to share their
lic actions, such as product quality, safety, environment,
opinions about companies with a wide “gossip circle”:
employee relations, new markets, and overall reputation.
immediate friends, professional colleagues, or people
Identify the triggers to action for each TrustHolder segment.
they know through community, school, or educational
Then, target the media sources they rely on. (See chart
organizations. They want to talk about your marketing
below.) Through focused research, a company can identify
practices, employer reputation, and environmental
a unique mix of TrustHolders for any market or situation and
record. A company might target Social Networkers
create a communications strategy that will engage them.
if they were looking to restore consumer confidence
in its products, attract talent as a good employer, or Laurence Evans
educate patients about the safety of a medicine. is president of StrategyOne.

TrustHolder Profiles

Social Networkers Social Activists Solo Actors Uninvolved
Global % of Elites 39% 26% 11% 24%
Trust in business 61% 57% 45% 48%
Marketing practices
Community impact
Financial performance Product / service Not defined by
Corporate quality
Health influence actions / attitudes in
Triggers to Action philanthropy
Safety track record Customer service relation to trusted or
Labor relations distrusted companies
Environmental record Pricing
Environmental record
Behavior as employer
Traditional media +
Peer conversations, Traditional media +
Traditional media +
radio, advertising, Online boards or Traditional media +
Sources of Information TV news, analyst
company forums, video, blogs, Advertising
reports, Wikipedia
communications, talk social networking sites
shows
Friends / family; Friends / family;
professional network + professional network +
Friends / family;
Who they influence Community / school Schools, online professional network
Themselves
groups; online groups; groups, political
volunteer groups groups

Segmented by actions and communications styles; percentages are global

13

United States: Business on Top

Trust in business to do what is right jumped to 58%
in this year’s Trust Barometer, creating the widest divide
„ CNN (54%), MSNBC (26%), Fox News (25%), CNBC
in the survey’s nine-year history between opinion elites’
trust in business and in government, which has dipped
(22%), and The Wall Street Journal (19%) are the top-
below 40%. Kraft and Starbucks are among the com- most relied-on sources for news about companies in
panies that enjoyed increases in trust among opinion the United States.
elites in this country.
„ Fewer Americans under 35 (50%) are getting informa-
Why the gap? The war in Iraq, the economy, and low tion about companies from newspapers than in any
popularity ratings for the current president are undoubt- other country surveyed.
edly fueling public dissatisfaction with the government.
At the same time, Americans are giving higher marks to „ When asked which gender president they were more
business, as more and more companies are stepping likely to trust, the majority of U.S. opinion elites say it
in – and stepping up – to tackle tough societal issues doesn’t make a difference (69%), but a statistically
like the environment, education, and health, historically higher group say they would prefer a male leader over
the role of government. This reservoir of trust in business a female (16% vs. 7%).
among opinion elites – as well as a growing interest
in “doing well while doing good” by American corpo-
rations – should serve business well in an economic
downturn.
In the United States, trust in virtually all types of
Wikipedia: Second
spokespeople rose over last year’s figures. Sixty percent
(60%) now believe what a “person like me” says about a
Most Credible Source
company (up from 51% in 2007). Credentialed experts
like analysts, academics, and doctors also enjoyed an
for Young Americans
uptick in credibility (42% to 56%; 48% to 54%; and 49% How credible is each source for information about a company?
to 53%, respectively).
Business magazines . . . . . . . . . . . . 62%
And finally, a fact that will likely give pause to market-
Wikipedia . . . . . . . . . . . . . . . . . . . . 55%
ers and corporate communicators alike: Wikipedia is
now considered the second-most trusted source of Radio news . . . . . . . . . . . . . . . . . . . 53%
information about a company by young adults in the Analyst reports . . . . . . . . . . . . . . . . . 51%
United States. Fifty-five percent say it’s either a very or
extremely credible source of information about a com- Friends, peers . . . . . . . . . . . . . . . . . 51%
pany (compared to 41% for the older group). Least cred- Newspaper articles . . . . . . . . . . . . . 48%
ible? Product and corporate advertising. TV news . . . . . . . . . . . . . . . . . . . . . . 46%
TV talk shows . . . . . . . . . . . . . . . . . . 45%
Company communications . . . . . . . 43%
Online message boards,
forums, newsgroups . . . . . . . . . . . . 38%
Company’s Web site . . . . . . . . . . . . 37%
Blogs . . . . . . . . . . . . . . . . . . . . . . . . 29%
YouTube . . . . . . . . . . . . . . . . . . . . . . 28%
Nancy Ruscheinski
is president of Edelman’s MySpace, Facebook . . . . . . . . . . . . 23%
U.S. Midwest region. Corporate or product advertising . . 22%
Opinion elites ages 25-34 in United States
“Extremely credible” and “very credible” responses only

14


Gap Between U.S. Trust in Business and Government at All‑Time High

100%
Business
90%
Government
80% NGOs
Media
70%
61%
60% 58%

50%
45%

40% 39%

30%

20%

10%

0%
2001 2002 2003 2004 2005 2006 2007 2008


Trust in Spokespeople, United States (2003‑2008)
If you heard information about a company from each of these sources, how credible would it be?

100%

90%

80%

70%
68

60%
60

60

60
59
57
56

56

54

54
53

53

53

50%
51

51

50
49
48
47

47
46

45
43

43

43
42

40%
41
37

37

36

36

30%
30
29

28
26

25

23
22

22

20%
20
2003 14

2006 13

2008 12

10%
2007 9
2003
2004
2005
2006
2007
2008

2004
2005
2006
2007
2008
2003
2004
2005
2006
2007
2008
2003
2004
2005
2006
2007
2008
2003
2004
2005
2006
2007
2008
2003
2004
2005
2006
2007
2008

2004
2005
2006
2007
2008

0% A person Financial/Industry Academic Doctor/Health care Non-Proﬁt/NGO Regular employee CEO Blogger
like yourself analyst specialist representative of a company of company


15

Europe:
A Region of Countries
Developing a communications strategy for Europe is
like buying a custom-made suit rather than one off the
rack. The reason is simple: There is still no country called
Europe: A Case for
Europe. We have a collection of cultures, beliefs, and cus-
toms that drive attitudes and behaviors. While mostly na-
Local Campaigns
tionally distinct, this year’s Trust Barometer reveals some France
over-arching trends and nuances. In the three largest
economies, U.K., France, and Germany, trust in media,
„ Young French opinion elites trust business much
government, business, and NGOs has risen—with the first more than older opinion elites do: 52% vs. 30%.
two sectors experiencing the largest gains. France, U.K., „ Among the older population, business and media
and Russia scored large increases in trust in government, are less trusted than in any country surveyed.
which likely reflects general support of new or popular
Germany
leaders (at least at the time our survey was conducted),
namely Mssrs. Sarkozy, Brown, and Putin. On the other „ German opinion elites have the highest use of
hand, religious institutions did not fare as well, decreasing online message boards (46%) and free-content
in seven out of 10 countries surveyed. Trust in NGOs dips encyclopedias like Wikipedia (39%) than in any
down in the emerging economies of Russia and Poland, country surveyed.
where business is considered a more positive force.
Ireland
The politicization of trust is apparent in other parts of the „ Irish opinion elites report the highest use of
survey as well. “A person like me” continues to be the first newspapers articles (90%) and radio news
or second choice for a reliable spokesperson in all Euro- (76%) for information about companies than in
pean countries, along with academics and doctors. Yet any country surveyed.
this year’s responses solidify the importance of a “person
like me” having similar political beliefs (the second-most Italy
important factor behind shared common interests). „ Credibility rises for eight of 10 types of spokes-
people over last year.
We also see the increasing impact of corruption on
business. When asked which factors are the most im- Netherlands
portant in building trust in a company headquartered in „ The Netherlands joins Sweden and China as
a foreign country, the No. 1 choice is the respondent’s the only three countries where government is
perception of how corrupt or fair business practices are in trusted most.
that country. That’s more influential than the country’s hu-
man rights record, the political relationship of the country Poland
with theirs, or the country’s environmental record. „ With only 11% saying they trust government to
do what is right, Polish opinion elites have the
When it comes to accessing Web-based sources of least trust in government than in any country
information like blogs, social networks, and video shar- surveyed.
ing portals, we’re also witnessing a line of demarcation:
Spain and Italy show higher trust in these outlets then their Russia
counterparts in central and northern Europe—and the „ Only 26% globally say they trust companies
United States, for that matter. Traditional media sources, headquartered in Russia, making it the least
particularly articles in newspapers, television reports, and trusted country for a company to be based.
business magazines, are the most credible sources of in-
formation; this year, all three outlets experience increases Spain
throughout Europe. But when people go online, the No. 1 „ Spanish opinion elites give business maga-
reason they do so is to read the news, demonstrating the zines and newspaper articles higher credibil-
continued fusion of online and traditional media. ity ratings than do opinion elites in any other
country surveyed.
Sweden
„ Global companies headquartered in Sweden,
David Brain
is president and Germany (and Canada) are the most trusted,
chief executive officer according to opinion elites around the world.
of Edelman Europe.

16

NGOs Have a Strong Trust Advantage in Most European Countries
How much do you trust each institution to do what’s right?

Sweden
Government 63
Business 39
Media 36
United Kingdom
NGOs 30
NGOs 53
Rel. 18 Eastern Europe Differs
Business 45
Ireland Russia
Media 38
NGOs 59 Business 42
Government 34
Business 47 Government 38
Religious 28
Media 43 NGOs 29
Netherlands
Religious 37 Religious 28
Government 64
Government 35 Media 28
NGOs 59
Media 59
Business 55 Germany Poland
Business 45
Religious 40 NGOs 47
NGOs 38
Media 38
France Media 37
Business 35
NGOs 57 Religious 32
Religious 27
Government 35 Gov. 11
Government 27
Business 30
Media 26
Religious 22

Spain Italy
NGOs 51 NGOs 63

Business 49 Religious 49

Media 46 Media 43

Government 37 Business 41

Religious 36 Gov. 29

Opinion elites ages 35-64 (European countries)

17

Asian Markets:
The China Syndrome
China looms large this year in Edelman’s study of trust
in Asian markets, which also surveyed South Korea,
Japan, and India. As an increasingly powerful engine of Trust in Chinese‑Headquartered
global commerce, China is top of mind in every market Companies Declines
in the region. But there are positive and negative sides to
its enormous influence – call it the “China Syndrome.” to All‑Time Low – Even in Asia
How much do you trust global companies headquartered in China
On the upside is the wealth of economic opportunity
to do what is right?
that China provides the other countries in the region. A
huge importer, China buys professional services and iron
USA Europe* Canada
ore from India, and electronics from Korea and Japan
to keep its engine stoked. But at the same time, trust Japan South Korea India
issues (product recalls and food safety) that plagued
China in 2007 have made an impact on her neighbors’ 50%
domestic markets.

For example, in Taiwan, the Japanese beer Kirin that 40%
is brewed in Japan commands a higher price than the
brand’s exact same brew made in China, which is per-
ceived to be of lower quality. It’s no surprise that trust in 30%
Chinese-headquartered companies declined significantly
this year in the other Asian countries surveyed, as it has
in the West.
20%

The big development on the communications front is
that “new media” is no longer new – it has become main-
stream media across Asia. In the developed economies 10%
of Japan and South Korea, deep penetration of broad-
band Internet access has helped bring about this sea-
change. Social media has been embraced especially in 0%
2006 2007 2008
China because it provides a forum for self-expression
and social commentary that is new to the country.
Traditional media sources remain both highly credible * Europe = U.K., France, Germany
and well-used across the region, but as opinion elites
are increasingly gathering and sharing information about
companies on the Web, an ideal media strategy in the
Asian markets would include a healthy mix of online and
offline channels. „ Nearly one half (45%) of Chinese opinion elites
say they frequently share opinions about com-
panies with people in online forums.
„ In Japan, “a person like me” is less credible
as a source of information about companies
than in most other countries, dropping from
50% to 37%.
„ CEOs are more credible in India (66%) than they
are in any other country surveyed.
„ In South Korea, the top three trusted news sourc-
Alan VanderMolen
is president of Edelman es for information about companies are local:
in Asia-Pacific. KBS, Chosun Ilbo, and JoonAng Ilbo.

18

Edelman Trust Barometer 2008

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